Michigan poverty rate grew 66 percent in past decade, report says

For many in Michigan, the holiday season will not be filled with cheer as nearly 1.7 million people -- one in five -- live in poverty.

Michigan's poverty rate grew by 66 percent during the past decade, the fastest growth in the nation, according to the report "Recession Scars Linger -- No Group Unscathed," released by the Michigan League for Public Policy.

In Oakland County, the current poverty rate was 11.2 percent and there's nearly a third more people living in poverty in the county than in 2007, the study showed.

The poverty level is defined at about $18,000 a year or less for a family of three and $23,000 a year or less for a family of four. More than 400,000 workers remain unemployed, and one in every four children is in poverty.

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"Policymakers in Lansing and Washington need to remember that even as the economy turns the corner, many families are still struggling to meet basic needs,'' said Gilda Z. Jacobs, president and CEO of the Michigan League for Public Policy.

The report found that, over the decade, the middle class shrank while poverty and economic insecurity grew.

For example, since the downturn of 2007:

n A larger share of households earn less than $35,000 while a smaller share earn more than $50,000;

The report calls for more investment in skilled-job training and job supports and stronger child-care assistance for low-income working parents.

Additionally, the researchers suggest the Legislature should reverse its decision to reduce the traditional period of unemployment from 26 weeks to 20 weeks, and Congress must enact extended unemployment compensation benefits while unemployment remains high.

"We must invest in our human capital to connect people to jobs and we must offer support to those who have been slammed by this downturn,'' Jacobs said.